Poor first quarter results would currently lead to a 5-10% fall in bonus payouts at commercial banks, according to research from Wall Street compensation consultancy Johnson Associates featured in an S&P Global Market Intelligence report.

The dip comes as a result of global economic factors such as the Russian invasion of Ukraine, rising interest rates, and inflation. According to Johnson Associates, bank revenue has also been hit by these factors leading to a marked decrease in equity underwriting and M&A advisory activity.

The research anticipated bonuses to drop by 35% to 40% by the end of the year. However, the consultancy also predicted that fixed income and equities trading desks could see increases of up to 20% and up to 10%, respectively, due to more client activity.

Banking Exchange / June 1, 2022